Ask an Expert: Can we still buy a co-op if we flunk the debt-to-income test?

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Q. My fiance and I are looking to buy a co-op on the Upper East Side, and we're running into one big hitch: Although we meet all other requirements, we do not meet the standard 25-28% debt/income ratio. Part of this is because we are young.

Should we just give up (sad day!), or are there any kinds of buildings or areas that we could look at that would be more likely to be lax in this department?

"It depends how far you are from meeting the requirement," says Sencovici. "If the board is looking for a 28% ratio and you're at a 30%, they might approve you with an escrow. Your opportunities for getting into a co-op if your debt/income ratio exceeds 30% diminish significantly. It would take someone taking a deep dive into your financial statements to see how to best present them to the board."

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